Britain’s Vodafone Group has filed an appeal with the Supreme Court in New Delhi against the decision of the Mumbai High Court that it was liable for capital gains tax relating to its 2007 purchase of a controlling stake in Vodafone Essar, then Hutchison Essar, the Economic Times reports. ‘The appeal challenges the recent High Court judgement on the issue of jurisdiction. Vodafone remains convinced that there is no tax to pay on the Hutchison transaction and we will continue to defend this position vigorously,’ Vodafone said in a statement.
As previously reported by CommsUpdate, last week it was revealed that Vodafone had lost its initial appeal; the UK outfit had filed the petition against the charges after claims that it was liable for capital gains tax as most of the assets it bought as part of the Hutchison Essar acquisition were based in India. Vodafone challenged the matter, arguing that Indian law at the time did not require it to withhold tax on the acquisition, and that capital gains tax was usually paid by the seller, not the buyer.